Afrouzi, Hassan; Dietrich, Alexander M.; Myrseth, … - National Bureau of Economic Research - 2024
We document novel survey-based facts on preferred long-run inflation rates among U.S. consumers. Consumers on average … prefer a 0.20% annual inflation rate, considerably below the Federal Reserve's 2% target. Inflation preferences not only … reveals that two narratives based on economic models--describing how inflation lowers the real value of wages as well as money …